The new ISO 37001 Anti-Bribery Management Systems standard has significant implications when working with third parties.
In today's global economy, few companies are wholly self-contained. As multinational companies across all industries are becoming increasingly reliant upon third-parties to do business, the risk of corruption by these business partners has become an area of growing concern. Case in point: more than 90% of reported Foreign Corrupt Practices Act of 1977 (FCPA) cases involved third-party intermediaries, according to the EY 12th Global Fraud Survey. These cases illustrate the need for companies to improve compliance efforts and continually manage corruption risks in global supply chains.
For companies concerned about third party risks, among others, a new standard published in October by the International Organisation for Standardisation (ISO) — ISO 37001 Anti-Bribery Management Systems — provides guidance as to the management systems that companies should have in place to prevent, detect and remediate bribery among their own operations and by business partners.
ISO 370001 requires companies to implement a series of measures, among them adopting an anti-bribery policy, requiring senior or "top" management and board-level leadership, and appointing a senior-level person or group to oversee the anti-bribery program. Companies are also required to undertake bribery risk assessments and due diligence on business partners and transactions, provide training, monitor implementation of the program, and take corrective action to work toward continual improvement.
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